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Shapiro stated at the bankruptcy court in Delaware she said that DOJ is not convinced that these shares were part of an estate in bankruptcy...
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and the ownership of the shares could be determined through the forfeiture process.
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Bankman-Fried is waiting for trial after pleading not to be guilty to fraud as well as FTX cofounder Gary wang founded a holding company in May 2022.
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To buy 56 million Robinhood shares for US$546 million in a loan through Alameda Research, the brokerage division of FTX.
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Three parties, including bankrupt cryptocurrency loan provider BlockFi, FTX creditor Yonathan Ben Shimon, and Bankman-Fried, have filed court proceedings in an attempt to take control over the shares.
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Lawyers representing FTX demanded in December that the shares be frozen while legal proceeding continues.
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On December. 13, the new FTX chief executive John J. Ray III, disclosed to Congress that the exchange had lost $8 billion in customer deposits.
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He also said that Bankman-Fried and selected executives from the exchange could access customer funds.
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Bankman-Fried faces charges of wire and bank fraud in addition to fraud and money laundering and may be sentenced to the remaining years in prison.
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Wang and Caroline Ellison, the former director of Alameda Research, have both agreed to plea bargains in exchange for fewer sentences.